Technical Analysis-Coppock Indicator

Coppock Indicator is seldom used in daily technical analysis. It was designed to help long term investors in deciding when to step into the share market.

You may log into www.incrediblecharts.com/technical/coppock_indicator.php
to understand the wisdom of this indicator.

It has a solid reputation and has withstood the challenge of back testing data up to 100 years into history.

A buy signal is generated when the indicator falls below zero and subsequently starts trending upwards again.

Lately the indicator has turned negative last month for the first time since 2002, not only for the indices in US but also in Japan, UK and Australia. But we should not be excited because it may take 5 months to 12 months to reflect in the market after the indicator fall below zero.

Personally, we should monitor the global economic growth, fundamental analysis together with this indicator and wait until all the worst of the worst news have been priced into equity markets. Then the markets will start trending upward again.